FIN300 Inc.'s manager believes that economic conditions during the next year will be strong, normal, or...

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Finance

FIN300 Inc.'s manager believes that economic conditions duringthe next year will be strong, normal, or weak, and she thinks thatthe firms returns will have the probability distribution shownbelow. What are the expected return and the standard deviation ofthe estimated returns?
Economic Conditions Prob. Return
Strong 15% 22.0%
Normal 50% 10.0%
Weak 35% -12.0%
Can someone please help me solve this using written outformulas? Thank you.

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StateProbability PReturnPReturnDeviation form See Answer

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FIN300 Inc.'s manager believes that economic conditions duringthe next year will be strong, normal, or weak, and she thinks thatthe firms returns will have the probability distribution shownbelow. What are the expected return and the standard deviation ofthe estimated returns?Economic Conditions Prob. ReturnStrong 15% 22.0%Normal 50% 10.0%Weak 35% -12.0%Can someone please help me solve this using written outformulas? Thank you.